It's the outer portion (which is usually the newest) of a root system that has the larger percentage of root hairs, the specialized cells responsible for water absorption.

New roots can regenerate if the damaged roots are cleanly and sharply cut, rather than ripped and shredded.

Hopefully, the potting soil is a porous, fast draining one that can be watered frequently without fear of causing rot. Your plants will need access to available water much more often than if the roots had not been damaged.

The plant looks pretty healthy basically. You will give it a better chance at survival by cutting back the plant. Transplanting damages & shocks the root system so it cannot support all that top growth.
I think I'd cut it back by about half (cutting just above the 3rd pair of leaves) to relieve some of the stress. Use the cut portion or try rooting it.

If you can water it with a seaweed solution (Maxicrop is what I use) that seems to assist with transplant shock & regeneration. Good luck!

Give it temporary shade and keep the soil moist until it recovers. Basil needs to stay above 60F, also.

Thank you all for the suggestions!

My basil is doing great now. I had it enclosed in a large jar (same method I do when I root roses & other cuttings). I pruned the larger leaves and cut the tip of the plant. After a few days, the leaves are perky again.

This post was edited by Misai on Thu, Jan 16, 14 at 23:06